Micron case causing concern for US companies in China, business chamber says

A leading U.S. business lobbying group said Wednesday that Beijing’s examination of U.S. chipmaker Micron Technology Inc (MU.O) was a “major concern” for other companies in China.

In the absence of data or “real evidence showing that Micron’s products provided or stood as an example of a particular vulnerability to China,” the probe suggests that Beijing may target other companies or industries based on unclear suspicions, according to AmCham China policy committee chair Lester Ross.

“It is a major concern because China lacks transparency in many conventions of law and policy, and this is one,” Ross said.

China’s cyberspace authority announced a cybersecurity examination of Micron Technology devices in late March to “prevent hidden risks and safeguard national security.”

Ross made his remarks during a media roundtable following the Beijing-based chamber’s business sentiment study, which polled 109 American companies in China from April 18-20.

After the government eliminated COVID-19 limitations in late 2022, respondents were more positive about China’s commercial future.

More corporations worry that worsening U.S.-China relations could hurt operations. 87% of respondents were gloomy about the two countries’ relationship, up 14 percentage points from the previous poll.

AmCham China president Michael Hart said the study revealed American companies feel the investment environment in China is becoming less predictable.

Micron said it will assist with the probe and that its China shipments and operations were unaffected. Washington’s 2022 export curbs on China’s chip industry prompted the study.